How Much Does It Cost To Sell A Home

What Are My Closing Costs When Selling A Home

How much does it cost to sell a home? The answer to this age old question has become the topic of conversation and less clear as the Zillows and e-buyers of the world come into the market place. We are here to provide some clarity and truth behind the real estate costs associated with selling to or using a discount brokerage or an e-buyer company.

***Do Your Research, Read Disclaimers and Research The Better Business Bureau before you do anything***

REALTOR - Let's start with the traditional route of listing your home with a Realtor and assuming a sales price of $200,000:

  • Sales Price: $200,000
  • Realtor Commission: 6% (200k x 6% = $12,000 / this is split between the listing agent and the buyer's agent)
  • Doc Stamps on the Deed: $7 per $1k (200 x 7= $1,400 / this is paid to the County Clerk of Courts)
  • Title Insurance: $5.75 per $1k (200 x 5.75 = $1,150 / this provides title insurance coverage to the buyer)
  • Closing Office Fee: $750 (cost for the title company to perform the closing)
  • Lien Search: $250 (this covers the search for any open municipal liens and code enforcement liens )
  • Prorated property taxes and HOA dues if applicable
  • Gross Proceeds to Sellers Using a Realtor: $184,450

ZILLOW - Zillow promises to provide a quick offer with no repairs and very little in closing costs. Easy and no stress, but at what cost to you as the seller. We will assume the same sales price of $200,000:

  • Sales Price: $200,000
  • Zillow Commission: 6% (200k x 6% = $12,000)
  • Zillow Service Charge: Averages 2.5% but could be as high as 7.9% (200k x 2.5% = $5,000 / per Zillow's website this fee covers the cost of home ownership before resale including taxes, maintenance, and utilities, as well as the potential risks associated with the sale). Per Zillow's site this "service charge" varies for each property and can range from 1.5 - 7.9%!!!!
  • Doc Stamps on the Deed: $7 per $1k (200 x 7= $1,400)
  • Title Insurance: $5.75 per $1k (200 x 5.75 = $1,150)
  • Closing Office Fee: $750
  • Lien Search: $250
  • Prorated property taxes and HOA dues if applicable
  • Gross Proceeds to Sellers Who Use Zillow: $179,450 (this is $5k less than using a Realtor and this is assuming Zillow doesn't offer you less than market value for your home - not a wise financial decision)

REDFIN - Redfin says they only charge 1% to sell your home which is very misleading. This 1% is just for the listing side and only applies if you use them to purchase another home. If you don't use them to buy another home it's actually 1.5% on the listing side only. This 1.5% does not include the buyer's agent commission which is another 2.5%. If you market a home for sale on MLS, you have to offer buyer agent compensation. So now we've gone from 1% to 4%. Wait it keeps going. If the buyer of your home is not represented by another agent, the commission gets increased again by another 1% and winds up being 5%. There are also minimum commissions amounts and other stipulations. Do your research before signing anything with companies like this. Everything should be explained to you upfront, in writing and made very clear without deception.

OFFERPAD - Offerpad charges 5%, but they also charge concessions for any perceived repairs or updates which can account for another 2% or more increasing their commission rate to over 7%! Please read the Better Business Bureau reviews about Offerpad.

***Do Your Research, Read Their Disclaimers and Research The Better Business Bureau before you do anything!

Please do your research and make an informed decision without falling for enticing "low commission" or "quick sale" claims. Most of these companies are here to make a quick profit and quickly move from one seller to the next without concern. Hire a trusted local Realtor who will deal with you honestly and fairly while getting you top dollar for your home. A good Realtor understands the value of repeat business and will be there before and after the sale. Before you make the decision to go with a discount brokerage or sell your home to an e-buyer, consult with a local Realtor first. You'll be glad you did.

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